A stormy winter session of Parliament has come to an end. While a record number of members were suspended, the session also saw another record — nineteen bills of importance being passed by both houses of Parliament.
The Bills passed were diverse —from the Telecommunications Bill to the Central Goods and Service Tax (Second Amendment) Bill, to the critical Bharatiya Nyaya (Second) Sanhita 2023 (BNS2), the Bharaitiya Nagarik Suraksha (Second) Sanhita, 2023 (BNSS2) and the Bharatiya Sakshya (Second) Bill 2023 (BSB2) among others. Each of these Bills will, after they get the assent of the President, become laws and have a significant impact on all citizens.
Also Read: 18 bills listed for Parliament winter session, focus on women's reservation and criminal law reforms
Here in this article, I focus on those Bills which will have an impact on the tax authorities and payers of indirect taxes.
BNS2 replaces the Indian Penal Code 1860 (IPC). Both the Central Goods & Services Tax Act (CGST) and The Customs Act (TCA) have provisions relating to summoning persons to give evidence and produced documents —Section 70 of CGST and Section 108 of TCA respectively. The existing provisions of these acts refer to the provisions of the IPC to stress that the proceedings consequent to summons will be deemed to be judicial proceedings within the meaning of sections 193 and 228 of the IPC.
What this in effect means is that whoever has been served with a summons has to appear, with consequence of punishment in case he/she does not appear, is bound to produce documents sought under summons to give the information sought. And, he/she should also give a statement honestly with consequences of punishment spelt out in case they give false information. These details are spelt out in Chapter XIII from sections 206 to 226 of the BNS2.
While, BNSS2 has replaced the Criminal Procedure Code (CrPC) 1973. It is the procedural law for the administration of the BNS2. This provides for the procedure for search, seizure, summons, (chapter VI) arrest, (chapter V), prosecution (chapter XV to chapter XXIII) and bail (XXXV).
Thus, both CGST and TCA which have provisions of search, seizure, arrest, summons, prosecution, and bail which were previously determined by the CrPC will now have to adhere to the provisions of the BNSS2. The BNSS2 like the CrPC classifies offences into cognizable and non-cognizable, bailable, and non-bailable. These are segregations which both CGST and TCA also make depending on the nature and seriousness of the offence.
While most of the new provisions are similar to the CrPC, there are significant differences too. The BNSS2 mandates forensic investigation for offences punishable with seven years of imprisonment or more. All trials, inquiries, and proceedings may be held in electronic mode.
Production of electronic communication devices, likely to contain digital evidence, will be allowed for investigation, inquiry, or trial. If a proclaimed offender has absconded to evade trial and there is no immediate prospect of arresting him, the trial can be conducted and judgement pronounced in his absence. The BNSS2 allows up to 15 days of police custody, which can be authorised in parts during the initial 40 or 60 days of the 60 or 90 days period of judicial custody.
Agencies engaged in violations of fiscal laws should use this provision sparingly —they should instead endeavour to complete investigations and launch prosecution proceedings early.
Other timelines in the Bill include: (i) giving judgement within 30 days of completion of arguments (extendable up to 45 days), (ii) informing the victim of progress of investigation within 90 days, and (iii) framing of charges by a sessions court within 60 days from the first hearing on such charges. All these changes should significantly help in speeding up the process of trial. Currently prosecutions can drag from anything from 4 years to 15 years.
The BSB2 retains most of the provisions of the Indian Evidence Act 1872. The BSB2 classifies electronic records as primary evidence unlike the Indian Evidence Act. Suitable changes will have to be made in the CGST Act and the TCA to make reference to BNS2, BNSS2 AND BSB2.
The much awaited Central Goods and Services Tax ( second amendment) Bill 2023 was also passed in this session. The amendment now should set in motion the long awaited process of establishment of the GST Tribunal. The Bill increases the age limit of the president from 67 to 70 and members from 65 to 67 years-this will be in keeping with the provisions of the Tribunal Reforms Act 2021.
The Provisional Collection of Taxes Bill, 2023 providing for the interim imposition or increase of customs or excise duty was also passed. The Bill repeals the Provisional Collection of Taxes Act, 1931. As per the statement of objects and reasons the Bill provides for giving immediate effect for a limited period to provisions in Bills relating to increase in duties of customs or excise, without change in tariff classification. Given the fact that the general elections are to be held in 2024 the Union Budget will only be an interim budget.
In the same session, the Telecommunications Bill was also passed replacing the Indian Telegraph Act 1885 and the Indian Wireless Telegraphy Act 1933. This bill will be of significance to enforcement agencies authorised to intercept, monitor or block messages between two or more persons subject to safeguards.
—The author, Najib Shah, is former Chairman, Central Board of Indirect Taxes & Customs. The views expressed are personal.
(Edited by : C H Unnikrishnan)
First Published: Dec 25, 2023 2:28 PM IST
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